Platforms pan FSA's 'illogical' cash rebate proposal

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A number of platforms have questioned the Financial Services Authority's (FSA) intention to ban cash rebates to consumers.

In their official reponses to FSA consultation paper CP 12/12, which closes today, providers said the proposals are "illogical" and would only "confuse" investors. In June, the regulator said the way in which consumers currently pay for platform services "hinders transparency" and "have the potential to negatively affect competition in the market". It said cash rebates potentially provide a mechanism for commission to continue being paid. But unit rebates would still be allowed under the plans. With the exception of Skandia, fund supermarkets and wraps have been united against t...

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